# ARK Automation Technology ETF big pump 36%, can you still enter a position?

This year, ARKQ (ARK Autonomous Technology & Robotics ETF) has gone crazy, rising 36% by mid-November, far exceeding the S&P 500's 13%. However, there are hidden risks behind this surge that need to be noted.

This fund heavily invests in Kratos, which has risen 166% this year, Palantir up 126%, and AMD up 99%—these three stocks account for 19% of the fund's holdings, and they have pulled the entire ETF up thanks to increased defense spending and the AI boom.

**The risk is here:**
- The valuation of the high-tech sector is already outrageous, and it can easily experience a big pump when the market adjusts.
- During the tech stock crash in 2022, ARKQ directly fell by 47%, while the market only dropped by 19%.
- The fund holds less than 50 positions, which poses a high concentration risk.

**My opinion:** Entering the market now is a bit rushed. The fund has already reached an all-time high and has been correcting in recent weeks. If you are just chasing the rise, I suggest waiting; if you plan to hold for several years, consider dollar-cost averaging to spread the risk. FOMO in the short term can easily lead to being stuck.

Bottom line: This is not a stable choice; it is a gamble on the future.